TAX  LAW 


OF 

GEORGIA 

AS  AMENDED  BY  THE 
GENERAL  ASSEMBLY,  1919. 


1920 

HYRD  PRINTING  CO.,  State  Printers, 
ATLANTA,  GA. 


f > * 


Finley 


THE  INHERITANCE 
TAX  LAW 

OF 

GEORGIA 

AS  AMENDED  BY  THE 
GENERAL  ASSEMBLY,  1919. 


1920 

BYRD  PRINTING  CO.,  State  Printers, 
A1LANTA,  GA. 


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THE  INHERITANCE  TAX  LAW  OF  GEORGIA, 
AS  AMENDED  BY  THE  GENERAL 
ASSEMBLY,  1919. 


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An  Act- to  create,  provide  for  and  require  the  payment 
of  taxes  whenever  property  passes  by  the  laws  of 
inheritance  or  succession,  by  will,  or  by  deed, 
grant  or  gift  intended  to  take  effect  in  possession 
or  enjoyment  after  the  death  of  the  grantor  or 
donor;  to  fix  the  rates  of  said  tax;  to  provide  for 
the  lien  of  said  tax,  the  payment  of  said  tax,  the 
appraisal  of  the  property  subject  to  said  tax,  and 
the  persons  who  shall  be  liable  for  said  tax;  to 
provide  for  the  appointment  of  administrators  and 
the  enforcement  of  said  tax  in  instances  where  no 
will  is  probated,  and  no  administration  is  pro- 
vided for;  to  provide  fees  for  the  Ordinary  in  mat- 
ters relating  to  said  tax,  and  fees  for  the  Tax  Col- 
lector in  collecting  said  tax,  and  for  other  pur- 
poses. 

Section  1.  Be  it  enacted  by  the  General  Assembly 
of  the  State  of  Georgia,  and  it  is  hereby  enacted  by 
the  authority  aforesaid,  That  all  property  within  the 
jurisdiction  of  this  State,  real  and  personal,  and  every 
estate  and  interest  therein  belonging  to  the  inhab- 
itants of  the  State,  and  all  real  estate  as  well  as  tan- 
gible personal  property  within  the  State  or  any  in- 
terest therein,  belonging  to  persons  who  are  not  in- 
habitants of  the  commonwealth  which  shall  pass  on 
the  death  of  the  decedent  by  will  or  by  the  laws  regu- 
lating descents  and  distributions,  or  by  deed,  grant, 
of  gift,  except  in  cases  of  a bona  fide  purchase  for  a 
full  consideration,  made  or  intended  to  take  effect  in 
possession!  or  enjoyment,  after  the  death  of  the  grantor 
or  donor,  to  any  person  or  persons,  bodies  politic  or 
corporate,  in  trust  or  otherwise,  shall  be  subject  to 
taxes,  and  shall  pay  the  following  tax  to  this  State: 


V 


6 


shall  be  divided  into  two  or  more  estates,  as  an  estate 
for  years  or  for  life  and  a remainder,  then  said  tax 
shall  be  levied  on  every  estate  and  interest  separately, 
according  to  the  value  of  the  same  at  the  death  of  the 
decedent;  that  the  value  of  the  remainder  in  said 
property  so  limited  shall  be  ascertained  by  deducting 
the  value  of  the  life  estate,  term  of  years,  or  period 
of  limitation  from  the  fair  market  value  of  the  prop- 
erty so  limited  and  the  tax  on  the  several  estate  or 
estates,  remainder  or  remainders  or  interest  shall  be 
immediately  due  and  payable  to  the  Tax  Collector  of 
the  proper  county  and  said  tax  shall  accrue  as  pro- 
vided in  Section  three  of  this  Act;  that  the  value  of 
estates  for  years,  estates  for  life,  remainders  and  an- 
nuities shall  be  fixed  and  determined  upon  mortality 
tables  using  the  interest  rate  or  income  rate  of  six 
per  cent. 

Sec.  5.  Be  it  further  enacted  by  the  authority 
aforesaid,  That  if  such  property  subject  to  the  tax- 
ation imposed  by  this  Act  be  in  the  form  of  money, 
the  executor,  administrator  or  trustee  shall  deduct  the 
amount  of  the  tax  therefrom  before  paying  it  to  the 
party  entitled  thereto;  that  if  it  be  not  in  the  form 
of  money  he  shall  withold  the  property  until  the 
payment  by  such  party  of  the  amount  of  the  tax;  in 
any  case  the  person  to  whom  the  property  is  trans- 
ferred, the  executors,  administrators  or  trustees  shall 
be  personally  liable  for  the  amount  of  the  taxes,  and 
shall  have  the  right  in  case  of  neglect  or  refusal,  after 
due  notice,  of  the  party  entitled  to  the  property,  to 
pay  such  amount,  to  sell  said  property,  real  or  per- 
sonal, or  so  much  thereof  as  may  be  necessary,  in  the 
same  manner  as  he  might  by  law  be  entitled  to  do  for 
the  payment  of  the  debts  of  the  testator  or  intestate; 
that  out  of  the  sum  realized  on  such  sale  the  executor, 
administrator  or  trustee  shall  deduct  the  amount  of 
the  tax  and  the  expense  of  the  sale,  and  shall  pay  the 
balance  to  the  party  entitled  thereto. 


7 


Sec.  6.  Be  it  further  enacted  by  the  authority 
aforesaid,  That  whenever  any  legacy  subject  to  said 
tax  shall  be  charged  upon  or  payable  out  of  real  es- 
tate, the  heir  or  devisee,  before  paying  the  legacy, 
shall  deduct  the  amount  of  the  tax  therefrom,  and 
pay  the  amount  so  deducted  to  the  executor,  adminis- 
trator or  trustee;  that  the  amount  of  the  tax  shall 
remain  a charge  on  such  real  estate  until  paid  and  the 
payment  thereof  shall  be  enforced  by  the  executor  or 
trustee  in  the  same  manner  as  the  payment  of  the 
legacy  itself  could  be  enforced. 

Sec.  7.  Be  it  further  enacted  by  the  authority 
aforesaid,  That  every  executor,  administrator  or  trus- 
tee of  the  estate  of  the  decedent  leaving  property  sub- 
ject to  taxation  under  this  Act,  whether  such  property 
passes  by  will  or  by  the  laws  of  descent,  or  otherwise, 
shall,  within  three  months  after  his  appointment, 
make  and  file  an  inventory  thereof  in  the  Court  of 
Ordinary  in  the  county  having  jurisdiction  in  the 
estate  of  the  decedent;  that  any  executor,  administra- 
tor or  trustee  refusing  or  neglecting  to  comply  with 
the  provisions  of  this  section  shall  be  liable  to  a penalty 
not  exceeding  $1,000.00  to  be  recovered  in  an  action 
brought  in  behalf  of  the  State  by  the  Solicitor-General 
of  the  circuit  in  which  such  county  having  jurisdic- 
tion of  the  estate  is  located  upon  notice  from  the 
Ordinary  of  said  county. 

Sec.  8.  Be  it  further  enacted  by  the  authority 
aforesaid,  That  if  upon  the  death  of  any  person  leav- 
ing an  estate  subject  to  a tax  under  the  provisions  of 
this  Act,  a will  disposing  of  such  estate  shall  not  be 
offered  for  probate  or  an  application  for  administra- 
tion is  not  made  within  three  months  from  the  time 
of  such  decease,  the  State  Tax  Commissioner  or  the 
Tax  Collector  of  the  county  in  which  the  Court  of 
Ordinary  is  located,  having  jurisdiction  of  the  admin 
istration  of  such  estate,  may,  at  any  time  thereafter, 
make  application  to  the  proper  Court  of  Ordinary, 
setting  forth  such  fact,  and  praying  that  an  adminis- 


8 


trator  may  be  appointed,  and  thereupon  such  Court 
of  Ordinary  after  citation  and  due  advertisement 
thereof,  if  no  person  entitled  by  law  to  said  adminis- 
tration shall  apply  therefor,  shall  appoint  the  public 
administrator  of  the  county,  or  if  there  be  none  such, 
then  the  Clerk  of  the  Superior  Court  to  administer 
upon  such  estate. 

Sec.  9.  Be  it  further  enacted  by  the  authority 
aforesaid,  That  if  for  any  reason  administration  of  the 
estate  of  a decedent  leaving  property  subject  to  tax- 
ation under  this  Act  shall  not  be  necessary  in  this 
State  except  in  order  to  carry  out  the  provisions  of 
^ this  Act  it  shall  be  in  the  discretion  of  the  Ordinary 
upon  the  filing  of  a satisfactory  inventory  of  the  tax- 
able property  of  such  estate  by  the  heirs  or  persons 
entitled  to  inherit  the  same  to  dispense  with  the  ap- 
pointment of  an  administrator;  that  upon  the  filing 
of  such  inventory  the  appraisement  and  other  pro- 
ceedings required  by  this  Act  shall  be  had  as  in  other 
cases. 

Sec.  10.  Be  it  further  enacted  by  the  authority 
aforesaid,  That  when  property  subject  to  this  tax  is 
transferred  or  limited  in  trust  or  otherwise,  and  the 
rights,  interest  or  estate  of  the  transferees  or  benefi- 
ciaries are  dependent  upon  contingencies  or  conditions 
whereby  each  may  be  wholly  or  in  part  created,  de- 
feated, extended  or  abridged,  the  tax  so  imposed  on 
such  property  shall  be  due  and  payable  forthwith  by 
the  executor  or  trustee  out  of  the  property  trans- 
ferred; that  where  an  estate  for  life  or  for  years  can 
be  divested  by  the  Act  or  omission  of  the  legatee  or 
devisee  it  shall  be  taxed  as  if  there  were  no  possibility 
of  such  divesting. 

Sec.  11.  Be  it  further  enacted  by  the  authority 
A aforesaid,  That  the  Ordinary  of  the  county  having 
jurisdiction  of  the  administration  of  the  estate  of  the 
decedent,  shall  on  application  of  any  interested  party, 
or  upon  his  own  motion,  and  whenever  occasion  may 


9 


require  appoint  three  disinterested  persons  as  ap- 
praisers to  fix  the  value  of  the  property  subject  to 
said  tax;  that  the  appraisers,  being  first  sworn,  shall 
give  notice  to  all  persons  known  to  have  a claim  in 
the  property  appraised,  including  the  executor,  ad- 
ministrator or  trustee,  and  the  Tax  Collector  of  the 
county,  and  the  State  Tax  Commissioner,  of  the  time 
and  place  when  they  will  appraise  the  same,  such 
notice  being  given  by  advertisement  in  some  news- 
paper having  general  circulation  in  the  county  which 
has  jurisdiction  of  the  administration  of  the  estate, 
that  at  such  time  and  place  they  shall  appraise  such 
property  at  its  actual  or  market  value  at  the  time  of 
the  death  of  the  decedent,  and  shall  thereupon  make  ^ 
report  thereof  in  writing  to  said  Ordinary;  that  when 
property  is  located  in  more  than  one  county  the  ap- 
praisers appointed  in  the  county  in  which  the  estate 
is  being  administered  shall  appraise  the  whole  estate; 
that  each  appraiser  shall  be  paid  on  the  certificate  of 
the  Ordinary  $5.00  for  every  day  employed  in  such 
appraisal,  together  with  his  actual  necessary  expense 
incurred  therein,  and  the  fees  of  such  appraisers  shall 
be  taxable  as  a part  of  the  costs  of  the  administration 
of  said  estate  by  the  Ordinary,  and  said  fees  shall  be 
paid  by  the  executor,  administrator  or  trustee,  or  by 
the  heirs  at  law  to  whom  such  property  descends  in 
case  there  is  no  administration;  provided,  however, 
upon  the  agreement  of  the  parties  interested  to  dis- 
pense with  the  appointment  of  appraisers,  the  Ordi- 
nary himself  shall  appraise  the  property,  and  make 
and  file  a report  thereof,  subject  to  review  by  the 
State  Tax  Commissioner  in  his  discretion;  that  for 
his  service  in  connection  with  the  appointment  of 
appraisers  for  any  estate  the  Ordinary  shall  receive  a 
fee  of  $5.00,  and  for  the  appraisement  of  any  estate 
by  himself  the  Ordinary  shah  receive  a fee  of  $20.00, 
which  fee  shall  be  taxable  as  a part  of  the  cost  of  the 
administration  of  the  estate;  provided,  however,  that 
it  shall  be  the  duty  of  said  Ordinary  to  furnish  the 
office  of  the  State  Tax  Commissioner  within  ten  days 


10 


of  the  filing  of  the  same  with  a copy  of  the  appraise- 
ment in  every  instance,  whether  made  by  himself  or 
by  appraisers;  provided,  further,  that  any  appraise- 
ment of  any  estate  under  this  Act  shall  be  held  to 
comply  with  the  present  requirement  as  to  appraise- 
ment of  estates. 

Sec.  11-A.  That  any  person  or  persons,  including 
the  State  Tax  Commissioner,  being  dissatisfied  with 
the  appraisement  or  assessment  may  appeal  therefrom 
to  the  Court  of  Ordinary  within  sixty  days  after  the 
making  and  filing  of  such  assessment  on  paying  or 
giving  to  the  Ordinary  securities  satisfactory  to  pay 
all  costs,  together  with  whatever  taxes  shall  be  fixed 
by  the  court,  provided,  no  bond  or  security  shall  be 
required  of  the  State  Tax  Commissioner.  In  case  of 
such  appeal  said  cause  will  stand  for  hearing  at  the 
next  regular  term  of  the  Court  of  Ordinary. 

Sec.  12.  That  immediately  upon  the  filing  of  the 
^report  of  the  appraisement  the  Ordinary  shall  calcu- 
late and  determine  the  amount  of  tax  due  on  such 
property  under  this  Act,  and  shall  in  writing  certify 
such  amount  to  the  Tax  Collector,  the  State  Tax 
Commissioner,  the  executor,  administrator  or  trus- 
tee, and  to  the  person  for  whom  or  for  whose  use  the 
property  passes,  and  for  such  services  the  Ordinary 
shall  receive  one-half  of  the  commissions  hereafter 
allowed  for  the  collection  of  sch  tax.  That  said  tax 
shall  be  a lien  upon  such  property  from  the  death  of 
the  decedent  until  paid,  and  shall  bear  interest  from 
such  death  until  paid,  unless  payment  shall  be  made 
within  twelve  months  after  such  death,  in  which  no 
interest  shall  be  charged. 

Sec.  13.  Be  it  further  enacted  by  the  authority 
aforesaid,  That  all  taxes  received  under  this  Act  by 
any  Executor,  Administrator  or  Trustee,  shall  be  paid 
by  him  within  thirty  days  thereafter  to  the  Tax  Col- 
lector of  the  county  whose  Court  of  Ordinary  has 
jurisdiction  of  the  estate  of  the  decedent;  that  upon 


/ 


11 

such  payment  the  Tax  Collector  shall  make  duplicate 
receipts  thereof;  that  he  shall  deliver  one  to  the  party 
making  payment,  the  other  he  shall  send  to  the  Comp- 
troller General  of  the  State,  who  shall  charge  the  Tax 
Collector  with  the  amount  thereof,  and  shall  counter- 
sign such  receipt  and  transmit  same  to  the  party  mak- 
ing payment. 

Sec.  14.  Be  it  further  enacted  by  the  authority 
aforesaid,  That  the  Tax  Collector  of  each  county  shall, 
on  or  before  the  15th  of  each  month,  pay  to  the  Comp- 
troller General  all  taxes  received  by  him  under  this 
Act  before  the  first  day  of  that  month,  deducting 
therefrom  his  fees,  which  shall  be  the  same  as  his  fees 
on  Digest  taxes,  and  these  fees  shall  be  equally  di- 
vided between  the  Tax  Collector  and  the  Ordinary  / 
of  the  County. 

Sec.  15.  Be  it  further  enacted  by  the  authority 
aforesaid,  That  no  final  account  of  an  executor,  ad- 
ministrator or  trustee  shall  be  allowed  by  the  Court 
of  Ordinary  unless  such  account  shows  and  the  Ordi-  ‘ 
nary  so  finds,  that  all  taxes  imposed  under  this  Act 
on  any  property  or  interest  passing  through  his  hands 
as  such  have  been  paid;  that  the  receipt  of  the  Tax 
Collector  for  such  taxes  shall  be  the  proper  voucher 
for  such  payment. 

Sec.  16.  Be  it  further  enacted  by  the  authority 
aforesaid,  That  when  the  taxes  imposed  by  this  Act 
have  not  been  paid  within  twelve  months  from  the  / 
date  of  the  filing  of  the  amount  of  said  tax  by  the 
Ordinary  in  the  office  of  the  Tax  Collector  to  whom 
said  tax  is  payable,  the  said  Tax  Collector  shall  issue 
executions  against  the  persons  and  property  liable  for 
said  tax,  and  proceed  in  every  way  for  the  enforce- 
ment and  payment  of  said  tax  in  like  manner  that  he 
may  now  proceed  by  execution,  and  for  the  enforce- 
ment and  payment  of  direct  taxes  on  property  against 
delinquent  tax  payers. 


12 


Sec.  17.  Be  it  further  enacted  by  the  authority 
aforesaid,  That  all  laws  and  parts  of  laws  in  conflict 
herewith  be,  and  the  same  are,  hereby  repealed. 

Approved  August  19,  1919. 


r 


UNIVERSITY  OF  ILLINOIS-URBANA 


3 0112  061606783 


